A Fall in the Real Wage Rate ________ Firms' Profits

question 43

Multiple Choice

A fall in the real wage rate ________ firms' profits and leads to ________ in the quantity supplied.

• A)raises;a decrease
• B)does not change;no change
• C)lowers;an increase
• D)raises;an increase
• E)lowers;a decrease

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Definitions:

Extracted Ore

Raw minerals taken from the ground, which may be processed to extract valuable metals or other resources.

Loss On Disposal

The financial loss incurred when disposing of an asset for less than its book value or carrying amount.

Gain On Disposal

The profit realized from the sale of a fixed asset, such as machinery or real estate, above its book value.

Accumulated Depreciation

Refers to the total amount of depreciation expense that has been recorded for an asset since it was acquired, representing the asset's wear and tear over time.